FAC Explorer

Finding 26151 (2022-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-03-27
Audit: 23253
Organization: The Presbyterian Home at Galloway, INC (NJ)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: Security deposits were not refunded to former tenants within the required 30-day timeframe.
  • Impacted Requirements: Compliance with federal regulations for timely tenant security deposit refunds.
  • Recommended Follow-Up: Implement procedures to ensure all tenant refunds are processed on time.

Finding Text

Finding 2022-001 - Tenant Security Deposit Refund Requirement CFDA Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: January 1, 2022 - December 31, 2022 Pass-Through Entity: Not applicable Condition and Criteria: The Organization is required to remit security deposits to former tenants within 30 days from the move-out date. Cause: The Organization's processing of refund paperwork was not completed timely. Effect: Two of the five tenant files reviewed included documentation that showed the processing of the refund occurred after the standard 30 day period. Questioned Costs: No questioned costs were identified. Recommendation: The Organization should have procedures in place to ensure that annual tenant refunds are completed timely. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Corrective Action Planned: The property team and the Director of Affordable Housing have reviewed the current process and identified any area where additional follow up can be implemented. The organization implemented a new property management software in the 4th quarter of 2020 which has built in reminders for the timely return of security deposits. After a full year of testing; this system reminder has worked in alerting personnel when a security deposit refund is due. A second level of support in this process is being implemented to identify and train back up support to follow up on security deposit refunds should a staff member be out on leave unexpectedly, which was the case at the Galloway ? Countryside Meadows property. A layer of additional oversight for short staffed communities will be implemented. The Director of Affordable Housing will review the move outs monthly to determine if the refund is in progress. The facility will continue to send all refund requests to the Accounting department electronically via email. This will enable the Accountant to start the review process of the refund before submitting for payment. We are confident with the collaboration of the Accounting department that our internal review and utilizing any features provided by the new software will prevent any reoccurrence. Name(s) of Contact Person(s) Responsible for Corrective Action: Lystra Doobraj; Director of Affordable Housing; ldoobraj@springpointsl.org Completion Date: February 28, 2023

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 602593 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $533,356